Approved or Denied: The Small Business Loan Underwriter’s Perspective

I had the pleasure of interviewing a loan underwriter several days ago.  He’s been underwriter biz loans and lines for almost 20 years.  His analogy was simple.  Yet, how many times do we overlook the most critical elements of applying for a loan.  Here it is:

Underwriter’s Point of View

In my years as a small business loan underwriter, I have worked with a variety of applicants and transactions across the country, ranging from start up enterprises, purchases of existing operations, franchises, partner buyouts, etc.  As such, I am able to compile a few tips to help you have a positive experience with your potential lender.

First of all, be HONEST, particularly to any information you disclose in writing. Fraud or misrepresentation is grounds for immediate denial of your application. In addition, most lenders will require that you be able to produce documentation to verify certain items on your application or have the means to verify the items themselves (i.e. credit reports, background checks, etc).